African airlines, including Nigeria’s lost over $1bn in revenue to foreign airlines in 2012, a transport
infrastructure expert with the New Partnership for African Development, Dr. John Tambi, has said.
He also said that Africa still lacked necessary infrastructure to ensure rapid and radical economic growth
and development.
In a paper presented at the ongoing 22nd African Aviation Maintenance Repair and Overhaul Suppliers &
Stakeholders Conference in Addis Ababa, Ethiopia, a copy of which was obtained via email on Tuesday,
Tambi said it was time for African airlines to harness the potential in the sector.
He said, “In 2009, 78 per cent of all intercontinental flights were operated by non African airlines. Today,
more than 65 per cent of the intercontinental traffic to and from Africa is carried by foreign carriers. This
means that over 65 per cent of African intercontinental passengers do not use African airlines.
“As a result of this, in 2012 these foreign carriers made over $1bn in revenue from the African market.
“What is now even more frightening is the fact even the intra-African market that is the regional market,
which used to be the main domain of the African airlines, is now being encroached upon by some foreign
carriers.”
According to the NEPAD expert, Africa is experiencing its longest period of interrupted income growth
over the last three decades.
With Gross Domestic Product growth rate averaging five per cent over the last 10 years, the expert said
Africa now has one of the fastest growing regional economies in the world.
According to him, transport cost increases the price of African goods by 75 per cent.
The consultancy firm said the development showed why the combined size of three biggest airlines in Africa,
namely South African Airways, Kenya Airways and Ethiopian Airlines, was not up to one-third of one airline
in the Middle East, the Emirates.
The Managing Partner, Ernst & Young, Mr. Zemedeneh Negatu, in another paper presented at the
conference, said it was time for African airlines to return to the drawing board and learn from the growth
strategies of airlines on other continents.
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